Why Project Charters Truly Matter

A project charter acts as a foundational blueprint that authorizes a project’s existence, defining objectives, scope, and stakeholders to align all parties involved. It serves as a roadmap, ensuring clear communication and preventing scope creep, setting the stage for successful project execution.

Introduction

Visualize a new project in the workplace. Now, strip it of its map, its compass, or any means of direction whatsoever. That’s what it’s like to attempt a new initiative without a project charter. The project charter is a document that reveals the foundational blueprint of the project—what it is, why it exists, and what sort of organizational resources it will take to get the thing up and running. For project managers, especially in the productivity software realm, knowing how to read a project charter is as good as possessing a reliable roadmap. The document affirms the project’s goals and objectives and ensures the harmony of all minds involved—project team members and stakeholders alike.

A project charter contains crucial information about a project, including its reason for being, its purpose, and the precise specified objectives that must be achieved to declare the project a success. The project charter also mentions the key players involved, and it touches on what’s not going to happen in the project—what’s outside the project’s scope—so that everyone understands what’s going to be worked on and who’s going to do the work. The project charter is a document that everyone involved in the project can look at and read to understand the project’s fundamentals.

Creating a project charter is a collaborative effort. It is created during the initiation phase of the project and is signed by an authority figure to give it the go-ahead.

“A well-written project charter can significantly enhance project management success.” – Anna Baluch

Baluch goes on to say that the document ensures everyone is on the same page and that it defines the work that must be performed to meet project objectives. It also avoids scope creep, which is when extra tasks or requirements are added to a project after it has started.

Fact

Scope creep is a common issue when projects lack a clear charter.

In addition, a project charter is useful for obtaining necessary resources and approval, which is essential to pave the path for the planning and executing phases. It provides clarity and direction, which is vital for meeting both organizational and project goals. It seems to me that a project charter serves as the project’s flashlight, illuminating everything from what needs to happen (and not happen) down to the level of who needs to do what when and where.

How a project starts off largely determines how well it will turn out in the end. If a project manager wants to increase the odds that a project will succeed, the manager needs to push the project charter past its introductory stage and use the charter as a tool for managing a project through its early phase.

What Is a Project Charter?

The project charter is a significant and meaningful document for project management that formally allows the project to exist and gives the project manager the green light to use resources and carry out work. The project charter defines objectives, scope, and participants. More than anything, the project charter sets forth an authority structure for project decision-making and actually provides the framework for essential project elements actions to take place.

“And, perhaps best of all, the project charter makes everyone’s role crystal clear by establishing in no uncertain terms who will do what and when.”

A project charter is extremely important; it sets a common baseline for all the stakeholders involved in the project. It communicates what the project is trying to achieve (the goals) and what it needs in terms of resources to be successful (the requirements). The importance of a project charter cannot be overstated, as it establishes a common understanding among stakeholders about the project’s goals and resource requirements. This alignment is vital for facilitating communication and setting expectations. By clearly defining vision, scope, and success criteria, the charter helps prevent scope creep, allowing project managers to effectively guide project execution and make informed decisions throughout the project lifecycle.

Fact

Misalignment among stakeholders often leads to project delays.

Let us examine the essential elements of a project charter.

• Project Background and Purpose: Articulates why the project exists. This includes the context and business drivers behind the project. Understanding this backdrop aids in aligning the project with broader organizational goals.

Tip

Align your project with organizational goals for enhanced support.

• Objectives and Scope: Clearly outlines what the project intends to achieve, including any constraints affecting the project’s scope. This section is crucial for managing stakeholder expectations and aligns with success criteria, often following the SMART criteria.

• Stakeholders and Roles: Identifies all relevant stakeholders and their roles. This could list specific individuals or, when names are unavailable, designate roles necessary for project success.

• Resources and Budget: Defines the high-level budget and resources that have been allocated to the project. This ensures transparency and readiness for resource allocation decisions.

• Risks and Known Constraints: An initial assessment of potential risks and constraints to prepare for challenges ahead. Highlighting significant risks early can prevent costly issues later.

• Timeline and Milestones: Provides a rough timeline and key milestones essential for tracking progress. Establishing these expectations from the outset is crucial for successful time management.

Early in the project lifecycle, project managers create project charters. Stakeholders and project managers alike use project charters to evoke the necessary buy-in. Directively, project charters articulate the authority of the project manager and clearly delineate what stakeholders can expect from the project. The PMI’s PMBOK highlights that a well-drafted project charter is an indispensable part of the project initiation phase, laying the groundwork for what lies ahead.

Project Charter vs. Project Plan

To steer an organization through the complex world of project management, it is essential to have a firm grasp of the documents that not only guide but also define the projects in question. Two of the most fundamental of these documents are the project charter and project plan, which serve very different purposes during the project’s lifespan.

Your starting block in a project is the project charter. This strategic document is created early in the project’s life, often by the project sponsor, as noted here. Its main role is to outline the high-level vision, objectives, and scope of the project.

“If the project has a notional 30-second elevator pitch for securing organizational buy-in, the project charter is it.”

The project manager is authorized to do the work specified in the project charter, and much of what the project manager does is in service to the project charter. If the poor fellow (or gal) off in project purgatory happens to exist under some other project’s charter, good luck to them.

Tip

Use the project charter to gain stakeholder buy-in early on.

Conversely, the project plan is the manual for the detailed execution of your project and comes into being after the project charter is established. The plan is a tactical guide that breaks all your broader goals into manageable parts. It tells the project team who will do what, when, and how. Insights highlight its role as a dynamic document that adapts to changing needs, providing the project manager and team with the strategies necessary to navigate the project’s complexities. Projects often suffer when the project manager does not have or does not refer to a project plan. A project plan should not be seen as something that has to be worked through to the letter, but rather as a document that helps provide way finding for both the project manager and the project team.

The main difference between the charter and the project plan is what they emphasize and how detailed they are. The charter is a broad document that mainly has to do with getting stakeholder agreement and commitment. Working at its most strategic level, the charter states not just what the project is but also what it is not. The project plan, in contrast, is all about serving the project team. When the team is in place, the project manager assembles a plan that offers a detailed and organized pathway to “successful execution” of the project. Both documents are essential for effective project management. Knowing when to use what and with whom is a big part of the job.

Purpose of a Project Charter

Constructing a project charter is akin to laying a solid foundation for any successful project. Project managers frequently find this document essential because it fulfills multiple foundational roles that, in the best sense, steer the project toward successful execution.

Example

Consider a project to build a new community center; the charter would outline its purpose, budget, stakeholders, and initial timelines.

One of the chief functions of a project charter is to authorize a project officially. This document serves to confirm a project’s legitimacy within an organization, as well as to confirm—and sometimes even to ensure—the project manager’s authority in utilizing resources and making key decisions. Undoubtedly, the most powerful project charter within an organization is the one that holds the project manager’s authority in use of resources and in making key decisions. Clarity of purpose and authority transforms an almost magic way an ambiguous project manifests as a clear and compelling initiative resonating with stakeholders.

The project charter is a fundamental communication tool for the project. It states the project’s purpose. It indicates the project’s scope. It identifies the key players in the project and in the project environment. And it lays down the basic ground rules for communication among all these players. The project team and the project sponsors are the principal players. By the time a project charter is delivered, these two groups should have a clear and coherent set of reasons for doing the project. They should know what the project is supposed to achieve and where the boundaries of the project lie.

Creating a charter at the start guarantees that all stakeholders are on the same page, creating a clear path for all involved to achieve the end project. Since the charter is the reference point for all stakeholders, it gives those working in the project a sense of clarity about what is to be achieved.

“A robust project charter is crucial for accountability and transparency, driving the project towards its intended outcomes.” – Sarah Smith

Prior to beginning a project, a project charter that is well thought out and well written provides not only structure but also clarity, and it greatly increases the chances of project success. The charter states the project’s alignment with organizational goals and assures that the project will create value and meet the expectations of the various stakeholders when it is all said and done. It prevents the dreaded scope creep, thereby keeping the project tightly aligned with its original goals and objectives.

Project Charter Overview

A project charter is what keeps clarity and direction in any project. It’s the cornerstone of a project, establishing groundwork that must be laid before moving ahead. If you think of a project as something that can be divided into two halves—what you’re going to do and how you’re going to do it—then a charter clearly defines the first half. It tells you what you’re working on, where it’s going, who it’s for, and why it matters.

Project Objectives and Constraints

A project charter begins with a keen focus on objectives, which are shaped by the initial business case. These goals need to be clear and achievable. Using the SMART criteria (Specific, Measurable, Achievable, Realistic, Time-bound) ensures that objectives are precise and trackable.

“The SMART criteria serve as a precise compass guiding project objectives to be specific, measurable, achievable, realistic, and time-bound.”

Constraints define the boundaries concerning time, budget, and resources, and adhering to them is crucial for success.

Tip

Consistently revisit objectives to keep the project on track.

Key Stakeholders

Identifying stakeholders early in the project is essential. They include everyone from project team members to decision-makers and customer representatives. Even if not all names are finalized, acknowledging these roles ensures that responsibilities are clearly assigned, promoting accountability.

Risks Identified

Highlighting risks at the outset is pivotal. It demonstrates that the project manager is prepared for potential challenges. By prioritizing and addressing these risks, the team can develop mitigation strategies to avoid issues down the line.

Benefits of the Project

Understanding and articulating the benefits a project brings is vital for gaining stakeholder support. Benefits should align with organizational goals and values, and revisiting them at the project’s end helps assess success.

General Overview of the Budget

While detailed budget figures might not be available early on, a general overview of anticipated costs sets financial expectations. Outlining the budget sources supports resource allocation and financial planning.

Success Metrics

Finally, success metrics must be defined to assure stakeholders that the project’s outcomes can be measured against its objectives. Whether it’s meeting specific deadlines or remaining within budget, success criteria offer a means to evaluate project performance. This ensures consistent progress monitoring throughout the project lifecycle.

By understanding these components, project managers can craft a project charter that not only serves as a guiding document but also acts as a tool for engaging stakeholders and aligning team efforts. The project charter transforms potential challenges into structured steps towards successful project completion.

How to Write a Project Charter

You don’t need to feel overwhelmed when you’re asked to create a project charter. It’s a document that communicates a project’s essence in such a way that all stakeholders understand what the project is and what its expectations are. Let’s dissect this process into manageable steps that yield a clear and useful project charter.

To write a project charter, you must first grasp the fundamental goals and objectives of your project. These should correspond with the organization’s aims and should be constructed around the SMART criteria—specific, measurable, achievable, relevant, and time-bound. When the objectives are precise, the project team has a clear route to follow and a vision of “what” they are to accomplish.

Next comes the definition of project organization. This is about specifying who is doing what and with whom in a group that influences or is influenced by the project. The documentation of this part of the plan serves to establish a governance structure that makes clear who reports to whom and who has the authority to make decisions. It is essential for everyone to understand this structure upfront if they are to work effectively together.

“Decisions and reports may have to be made and given, after all.”

To produce an implementation plan means to specify how the project will be carried out, and by whom. An essential part of the plan is the timeline, which must not only indicate what tasks must be carried out when, but also denote the key milestones of the project. Along with the plan must come a budget outline, as well as a clear indication of how resources are to be allocated. Here is where a Gantt chart can serve as a useful tool.

Example

A Gantt chart provides a visual timeline of tasks and milestones.

In addition to problem areas, the charter must also identify and address potential problem areas. This means making a list of the risks, assumptions, and constraints that could impact project execution and asking, “What if?” to generate “exceed my expectations” type challenges that the team could encounter during project execution. That list should also involve saying “No!” to some ideas that are not feasible within the project. This is necessary to make sure that unforeseen issues do not waylay the project.

These structured steps lead to a solid project management framework, a framework that makes it much more likely for a project to be successful. Why? Because the project participants have a shared understanding of what the project is and is not, and they have a clearer line of sight to what successful project outcomes look like.

What to Do Once the Project Charter is Complete

When the project charter is completed, project managers arrive at a crucial moment. They’re about to take the ideas contained in the charter and put them into action. They’re going to transform the not-very-specific vision of the project in the charter into a series of more specific actions that will enable the project to move forward.

Project Authorization: Having a project charter serves as the formal document that authorizes the existence of a project. With its approval, the project manager must secure formal authorization, typically from stakeholders or sponsors. This step ensures that all parties acknowledge and support the project’s commencement, setting a clear path for progression.

“Having a project charter serves as the formal document that authorizes the existence of a project.”

Developing the Project Management Plan: Following authorization, it’s crucial to dive into detailed planning. This involves crafting a project management plan, an extensive document detailing the project’s scope, timelines, budget, risk management, and communication strategies. The project management plan acts as a roadmap, helping to avoid potential pitfalls like budget overruns and timeline delays. It is a vital tool that outlines how the team will reach the objectives set in the charter.

Tip

Use tools like Gantt charts for effective timeline management.

Creating the Scope Statement: Here, the project manager elaborates on the project scope, providing clarity on what is included and excluded. This enhanced scope statement ensures everyone involved understands the project’s boundaries, helping to manage and mitigate scope creep – a common concern among project managers.

Assembling the Project Team: A project charter identifies key stakeholders but doesn’t form a team. It’s now time to build a skilled team suited to the project’s demands. This team should encompass diverse skills crucial for achieving the goals outlined, with clear roles and responsibilities to drive efficiency.

Executing and Monitoring: With plans and teams in place, execution begins, where the project manager leads in implementing the plans and closely monitors the project’s progress. Continuous tracking against established baselines and real-time adjustments ensure that objectives are met efficiently. Utilizing tools like Gantt charts to monitor tasks can provide valuable insights into the project’s trajectory.

Engaging Stakeholders: Maintaining strong, continuous communication with stakeholders is essential. Regular updates and engagement help in managing expectations and clarifying deliverables, as stakeholder satisfaction is often a key measure of project success.

These steps lay a strong foundational path to project success. Engaging in thorough preparation and structured processes helps managers not only navigate challenges with confidence but also capitalize on opportunities to add real value to their organizations.

3 Key Tips for Writing a Project Management Charter

An effective project charter is defined by clarity, relevance, and team alignment. For project managers to truly understand the power of this essential document, they must integrate these three key insights and make much of them in leading and managing their projects.

To begin with, collaboration shines forth as a superior method. When team members are involved in the charter-making process, they contribute a diverse set of perspectives and ensure a greater likelihood of project success. Using the team to actively collaborate in the making of a project charter imbues the charter with team insights and experiences that make it look and feel like a more robust document—that better serves as the edifice of any project.

“Engaging stakeholders early can preemptively address concerns and create a sense of ownership across the board.”

Then, being brief is critically important. A concise charter doesn’t mean you’re omitting necessary parts. You’re just focusing on what’s necessary to deliver clear, high-level information that will serve as a good reference in the project lifecycle. You’re using less complex jargon, if any, and no extraneous details, which makes for a more accessible document. All stakeholders should be able to read the charter and easily understand your intent and the charter’s objectives. Sinking back into the document becomes unnecessary if the right information is on the right level and is well-organized.

Tip

Keep project charters concise for easy understanding.

Finally, think about making templates you can use more than once. Using a template simplifies the process, ensuring consistency and completeness across a number of different projects. They are also a kind of checklist to ensure that you have included all the necessary elements and that you are presenting the information in as clear a manner as possible—using a template is basically a guarantee that your project charter will have a positive reception. And the benefit of making and iterating over a template for the project charter is that you can save time and achieve a clearer end result across multiple projects.

Project managers can create project charters that communicate purpose, engage stakeholders, and set a strong course toward project success if they move forward with these strategies.

Your Project Charter Template

The next strategic step in project management could be offering a downloadable project charter template. You can find many such templates online, but they aren’t all created equal, and they don’t all fit the diverse styles of the project managers who use them. They should. The project charter sets the stage for a project. And if you think about it, the project charter is not something you can always download as a template. Sometimes, like with a work of art or a piece of music, you have to create it yourself.

You can download the Excel template so that it can be used to create your own project charter. The template includes key elements that outline your project’s vision, objectives, and scope, providing a foundational document that aligns all stakeholders.

Components of the Template

Fact

Templates ensure consistency and save time in future projects.

Dissecting the template reveals some indispensable segments within it:

• Executive Summary: Provides a concise overview, giving a snapshot of the project’s intentions and anticipated achievements.

• Project Definition: This is where the project’s purpose comes alive, detailing objectives, scope, and deliverables using clear and specific criteria.

• Project Organization: Defines the roles and responsibilities within the team, ensuring every member understands their position and tasks.

• Project Plan: Outlines the approach, milestones, and scheduling, aided by visual tools like Gantt charts. This section ensures that timelines and key events are trackable.

• Risk Management and Constraints: Identifies potential risks and constraints, equipping you with foresight to tackle challenges proactively.

Customization at Its Best

Tailoring the project charter template to your specifications is essential for addressing your particular project requirements. It is easy to do and should be the first step in using the template effectively. The first step is to fill in the template’s predefined sections with the particulars of your project.

“This simple project charter document helps managers plan their projects clearly and easily.” – Amy

How to Use the Template

The template encompasses a detailed guide that walks you through the process of entering your project’s particulars. From defining goals to aligning team roles, the template supports clear communication and efficient project management, setting your project on a path to success.

Keeping a project charter in place can prevent scope creep and keep your team aligned throughout the project’s lifecycle. Using a project charter document template allows you to quickly generate a clear and easy document to serve your project’s managerial needs.

When you use a template, you are not merely completing a document. You are creating a guide that, in a direct yet comprehensive way, tells your project what to do from start to finish. That is why project managers use templates. Whether your project is simple or complex, a template is a good way to get your team aligned and ready for action.

Project Charter Examples

Offering project managers real-world examples of project charters can provide worthwhile insights into how to use them to align their initiatives with the oftentimes nebulous goals of the organization. What follows are a few short scenarios that demonstrate how project charters translate into real life.

A typical instance is a website development project, where the project starts with the core purpose: enhancing user engagement. The project plan outlines specific, measurable objectives: improving site load time, and upping conversion rates by 15% over 6 months. The scope might include certain pages that need a complete redesign, while also naming those that will remain unchanged (to manage expectations across the user base).

“At the end of the day, what this comes down to is better engagement across the site, which involves load time, getting your attention and keeping you there (the main function of a web developer); redesigning you to stay (a UX function); and if you leave, giving us a chance (the first part of a project aimed at enhancing user engagement).”

Example

A website development charter focuses on enhancing user experience through specific objectives.

The construction project in this situation plans to deliver an office building that is sustainable. The project charter starts things off right by detailing the green initiatives that the project must undertake. Any completion date that could be used by the project team as a deadline is specified. The objectives are what’s really great about this project charter. They focus on achieving a couple of specific sustainability certifications that we can use to gauge how “green” the final building will be.

The third instance concerns a product launch. The charter describes an aim to capture 10% of market share by the end of the first quarter after the launch. It outlines a clear project scope—defining the products and features included in the launch, while explicitly excluding enhancements that are planned for future iterations. The charter also lists no fewer than six stakeholder groups—product engineers, marketing staff, sales teams, and others—making very clear who is responsible for which part of the project, thus ensuring that everyone involved knows the project’s direction.

It is beneficial to use digital tools for the continued coordination and assignment of tasks in projects like these. For helping to manage daily activities, one might use Any.do’s to-do list for iPhone or Android. For projecting timelines that might sync with a team working on a shared calendar, it might be better to use the desktop version of the app or the browser extension.

These illustrations show that a project charter provides not only authorization but also light to align all relevant personnel. Following the lead of these particular instances, project managers might better discern what way to tilt a charter when the project’s shape demands a different angle or tool for day-to-day steering purposes.